Q2 2011 – A Market On the Move, What Does That Mean for You?

This month I want to review the changes in the Sarasota real estate market during the second quarter of 2011. I’m glad to see that what is palpable anecdotally from my experience every day has been proven by the numbers for Q2 2011.

A Promising Quarter

The number of properties sold for the 2^nd quarter is 16% higher than during the 1^st quarter of 2011.

The market is moving again and, while not robust yet, there are some good indicators, particularly that the number of distressed sales is down significantly from 40% of the total properties sold during the 1^st quarter, to about 30% of all properties sold in the 2^nd quarter.

Which Areas of the Market are Performing Best?

While 90% of the market is under $500,000 there has been a 12% increase in the number of properties sold between $200,000 and $500,000.

For properties listed over $1m, there is now just 16-17 months of inventory down from 31 months of inventory a quarter ago, so as I have mentioned before, properties in this part of the market have been moving well.

What Do These Recent Changes Mean for Your Sarasota Investment Property, and For the Market in General?

It is been quite evident for several quarters that Sarasota has become very affordable again, and now the luxury buyer has tamped up their purchases. This validation at the higher end of the market confirms the desirability of Sarasota property, and this past quarter’s numbers show there are opportunities at all price points.

While I don’t see real appreciation happening for several quarters yet, the better properties are selling quicker, now, and that’s great. It is really encouraging to experience the healthy activity in the market.